It was a bit strange, but here is the only thing that makes sense.
1. Danny did not feel either of them could help them in the playoffs this season, and did not see either of them as having big upsides.
2. Danny knew they needed the depth of legit NBA players who they could use in the playoffs if needed in those roster spots.
3. By trading them, they saved more cash than just cutting them, because of the luxury tax.